A coalition of marijuana dispensaries in New York has filed a lawsuit against the state, arguing that regulators’ recent interpretation of a school distance rule threatens the future of dozens of licensed businesses despite no wrongdoing on their part.
Filed in state Supreme Court in Albany, the suit asks a judge to declare the dispensaries’ locations legal and bar the state from taking enforcement action. The dispute began after the Office of Cannabis Management informed over 150 existing or planned dispensaries that officials had misapplied the law requiring stores to be a set distance from schools.
For nearly three years, the agency measured the 500-foot requirement from the school’s front door to the store’s front door. Regulators now say the law requires measuring from the school’s property line, a change affecting about 60 open dispensaries, 40 licensed but unopened stores, and around 50 pending applicants.
Businesses currently operating can stay open while renewal applications are processed, and the state has created a relocation fund of up to $250,000 per applicant. Regulators say they are pushing lawmakers to pass a fix, and a bill was recently introduced, but the Legislature is not scheduled to reconvene until next year.
The Office of Cannabis Management declined to comment on the lawsuit.